U.S. Economy Likely Grew 2.3 Percent in Second Quarter, According to Atlanta Fed Report

NEW YORK (Reuters) – The U.S. economy is projected to have grown at an annualized rate of 2.3 percent in the second quarter, following a disappointing report on domestic durable goods for June, according to the GDPNow forecast model from the Atlanta Federal Reserve.

This recent GDP estimate is a slight downgrade from the previously reported 2.4 percent figure noted on July 19, as indicated by the regional Fed.

On the same day, the U.S. Commerce Department released figures showing that total orders for durable goods—ranging from toasters to aircraft, designed to last three years or more—fell by 4.0 percent in June. This marked the most significant decline since August 2014, following a 2.8 percent decrease in May.

The drop in durable goods orders prompted the Atlanta Fed’s model to revise its forecast for real equipment investment in the second quarter, now expecting a decline of 1.9 percent instead of the previously estimated 1.2 percent drop.

Additionally, the Atlanta Fed reported that reduced inventory investments likely detracted 0.63 percentage points from the second-quarter GDP, a revision up from its earlier estimate of a 0.57 percentage point impact.